After an extended period of decline, the industrial conglomerate Honeywell is showing fresh signs of momentum. A sequence of strategic initiatives could potentially signal the long-awaited turnaround for the company, whose shares have shed more than 20% since the start of the year. Honeywell is now aggressively positioning itself across three high-growth sectors: energy, aviation, and quantum computing. Could this mark the beginning of a powerful resurgence?
A Multi-Front Strategic Offensive
Honeywell is making concurrent moves across several key industries. In the energy sector, the company has secured a prestigious project, partnering with Brooge Petroleum to develop Fujairah’s first gasoline refinery. This facility is projected to have a daily capacity of 15,000 barrels.
Simultaneously, the company is upgrading Slate Aviation’s fleet with high-speed internet connectivity, a significant advancement within the lucrative business jet market. Perhaps the most groundbreaking development emerges from the realm of future technology. Honeywell’s quantum computing subsidiary, Quantinuum, has been selected by the US Defense Department’s DARPA for a multi-billion dollar initiative. In a related move, the company is also launching a new high-precision quantum computer to the market.
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Preparing for the Aerospace Spin-Off
Alongside its operational maneuvers, Honeywell is steadily progressing with the planned separation of its aerospace business. The company has laid the groundwork for the spin-off, scheduled for the second half of 2026, with key leadership appointments. Sean Meakim has been named the Investor Relations lead for Honeywell Aerospace, and Jim Currier has been tapped to become its future CEO.
Institutional investors are already adjusting their positions in response to these developments. Despite the weak stock performance, Vestmark Advisory Solutions and ZEGA Financial have increased their holdings. Other funds, however, have slightly reduced their stakes, reflecting a market sentiment that is cautious yet hopeful.
The Critical Juncture
The central question remains: Can Honeywell’s strategic offensive finally reverse its downward trajectory? The stock is currently trading well below its key moving averages, from the 50-day to the 200-day. While a technical reading shows the shares are technically overbought with an RSI above 81, the fundamental news flow could inject new life into the equity.
Today’s presentation by Aerospace CEO-designate Jim Currier will be a crucial test. The markets will render their verdict on whether they are finally buying into Honeywell’s revitalized strategy or if the industrial giant will continue to struggle for investor favor.
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